Newberry Says Layoffs, Furloughs May Be Considered

Posted: Nov 20, 2009 3:02 PM
Updated: Nov 20, 2009 3:11 PM

Lexington mayor Jim Newberry on Friday asked the city’s division directors to propose budget cuts to make up for a large part of an estimated $12 million -$13 million revenue shortfall in the current budget year.

“Like cities and states all over the country, our revenue projections are not meeting expectations and we will once again tighten our belt at city hall,” Newberry said.  “Over the past 3 years we have cut the fat out of the city budget. This year we will likely have to cut services to balance the budget.  My goal is to devise a plan that has the least impact possible on our citizens, who depend on many of our services.”

The city is anticipating that General Fund revenue in the current budget year (July 2009-June 2010) will fall below revenue in the previous budget year (July 2008-June 2009) for only the second time in the 35-year history of the Urban-County Government.  The first time it happened was in 1996.  The General Fund revenue projection in the adopted budget for the current budget year is $279.6 million.  The city finished the previous budget year (July 2008-June 2009) with actual General Fund revenues of $271.5 million.

Newberry said he will consider additional cuts proposed by Commissioners and Division Directors, plus a broad array of other options, before presenting a budget reduction plan to Council in January. Those options may include lay-offs, a pay reduction, furloughs, elimination of city programs or other cost-cutting measures.

  • Avatar for blonde bomber
    blonde bomber at Nov 23rd 2009 12:33 PM

    I don't understand why you have to consider pay reductions unless you are in upper level management and a non-merit employee.  Benefits are being cut in every aspect, and pay reduction doesn't really answer any problem.  For those employee's close to retirement, and reducing pay, only increases the reasons for staying instead of through attrition.  When your budget doesn't meet its expectations, means there is still fat to trim. Eliminate programs that were installed within the past 5 years. Anything less invested is best and not established a dependency to the public.  Eliminate programs that are not producing a positive number. If the people we elect in government run their budgets like their personal lives...that's when you have to wonder how they know where to sacrifice.  What the heck is "other cost-cutting measures?"  That's pretty BROAD isn't it!  Simple Math...you can't spend what you don't have. Why are we estimating budgets if we aren't monitoring that we are staying within them as they progress thru the year.  If your shortfall was X amount of dollars the previous year, common sense would advise you can expect double the next year and then allow for a percentage of inflation to boot!

  • Avatar for concerned citizen in ky
    concerned citizen in ky at Nov 22nd 2009 3:11 AM

    why dont you and your immediate constituents take a paycut, instead of making those that work for hourly wages take a financial hit...?  you are presumably in a better positon (financially) to take a cut. Stop being greedy and do right by those of us that voted you in. We can just as easily vote you out.

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